Correlation Between AcadeMedia and Media
Can any of the company-specific risk be diversified away by investing in both AcadeMedia and Media at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AcadeMedia and Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcadeMedia AB and Media and Games, you can compare the effects of market volatilities on AcadeMedia and Media and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AcadeMedia with a short position of Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcadeMedia and Media.
Diversification Opportunities for AcadeMedia and Media
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AcadeMedia and Media is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding AcadeMedia AB and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games and AcadeMedia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AcadeMedia AB are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of AcadeMedia i.e., AcadeMedia and Media go up and down completely randomly.
Pair Corralation between AcadeMedia and Media
Assuming the 90 days trading horizon AcadeMedia AB is expected to generate 0.34 times more return on investment than Media. However, AcadeMedia AB is 2.94 times less risky than Media. It trades about 0.0 of its potential returns per unit of risk. Media and Games is currently generating about -0.05 per unit of risk. If you would invest 6,630 in AcadeMedia AB on October 23, 2024 and sell it today you would lose (10.00) from holding AcadeMedia AB or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AcadeMedia AB vs. Media and Games
Performance |
| Timeline |
| AcadeMedia AB |
| Media and Games |
AcadeMedia and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcadeMedia and Media
The main advantage of trading using opposite AcadeMedia and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcadeMedia position performs unexpectedly, Media can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Media will offset losses from the drop in Media's long position.| AcadeMedia vs. Inwido AB | AcadeMedia vs. Alimak Hek Group | AcadeMedia vs. Dometic Group AB | AcadeMedia vs. Byggmax Group AB |
| Media vs. Embracer Group AB | Media vs. Samhllsbyggnadsbolaget i Norden | Media vs. Sinch AB | Media vs. Zaptec AS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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